MAINTAIN A STEADY, RELIABLE INCOME

Changing jobs frequently or right before you apply for a mortgage may make it harder to qualify. When determining your ability to afford the mortgage, Habitat can only consider earned income that is claimed on your Federal Tax Return.

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REVIEW YOUR CREDIT REPORTS

Habitat strongly suggests that you review your credit reports (yes, all three) before you apply. You can get a free copy at www.annualcreditreport.com.

 

Habitat does not have a minimum credit score. We look at your payment history, total minimum payments on ALL of your debt (student loans and anything you co-signed included), any new credit, collections, etc.

 

TAKE A HOMEBUYER EDUCATION COURSE

Habitat is excited to partner with HomeFirst, a financial wellness initiative offered by The University of Alabama’s Center for Community-based Partnerships for individuals and families who are on the path to first-time homeownership. Visit http://ccbp.ua.edu/homebuyer-readiness-pathway/ to request a meeting and learn more.

 

HUD-certified housing counseling is offered by the City of Tuscaloosa. Other organizations also offer this service online, generally for a fee.

 

Many local banks and credit unions offer free homebuyer or financial education courses. These are also a good resource for learning about homeownership and resources that are available.

 

START SAVING FOR THE DOWN PAYMENT

Start preparing financially for homeownership by opening a savings account and saving for emergencies and a down payment.

 

GATHER YOUR IMPORTANT DOCUMENTS

Below is a list of some of the documents you may be asked to provide if your application meets our minimum guidelines. Every situation is different; therefore, you may be asked to provide additional information.

• Last two (2) years of tax returns if you have employment or self-employment income

• Most recent three (3) months of paystubs and/or benefit letters

• Most recent two (2) months of bank statements

• Social security cards for all household members

• Driver’s License, state-issued Identification Card, Passport, or Permanent Resident Card for all adult household members